Ambev S.A.v.Cervejaria Petropolis SADownload PDFTrademark Trial and Appeal BoardAug 28, 2018No. 92059437 (T.T.A.B. Aug. 28, 2018) Copy Citation This Opinion is Not a Precedent of the TTAB Mailed: August 28, 2018 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ Ambev S.A. v. Cervejaria Petropolis SA _____ Cancellation No. 92059437 _____ Douglas A. Rettew and Morgan E. Smith of Finnegan, Henderson, Farabow, Garrett & Dunner, L.L.P., for Ambev S.A. Mary Catherine Merz and Jennifer A. Widmer of Merz & Associates, P.C., for Cervejaria Petropolis SA. _____ Before Bergsman, Wellington and Heasley, Administrative Trademark Judges. Opinion by Bergsman, Administrative Trademark Judge: Ambev S.A. (“Petitioner”) filed a petition to cancel the registration of the mark FUSION (standard characters) for “non-alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink,” in Class 32, owned by Cervejaria Petropolis SA (“Respondent”).1 Petitioner alleges that Respondent has abandoned the mark with no intent to resume 1 Registration No. 3788757, registered May 11, 2010; Section 8 declaration accepted. Cancellation No. 92059437 - 2 - use. Respondent, in its Answer, denies the salient allegations in the Petition for Cancellation. I. Preliminary Issues A. Respondent’s objections to Petitioner’s notices of reliance on “2011 Wayback Internet Archive Printouts of bond-labs.com/brands” and “2011-2015 Wayback Internet Archive Printouts of Registrant’s websites” at grupopetropolis.com.br. Petitioner’s third notice of reliance is on “2011 Wayback Internet Archive printouts of bond-labs.com/brands” (March 10, April 16, June 6, July 17, August 16, and September 25, 2011)2 and its fourth notice of reliance is on 29 “current Internet printouts and 2011-2015 Wayback Archive Internet printouts of [Respondent’s] websites” at grupopetropolis.com.br. 3 Respondent objects to these notices of reliance on the ground that they were not produced by Petitioner during discovery.4 Respondent’s interrogatory No. 5 requests that Petitioner identify each investigation it conducted involving Respondent or Respondent’s mark and all documents relating to those investigations.5 In addition, Respondent’s document request No. 9 requests documents relating to any investigation about Respondent or Respondent’s mark.6 In response to Interrogatory No. 5 and document request No. 9, Petitioner stated that it conducted an investigation in June 2014 and that it would 2 17 TTABVUE. 3 18 TTABVUE. 4 53 TTABVUE 2. 5 53 TTABVUE 3 and 17. 6 53 TTABVUE 3 and 26. Cancellation No. 92059437 - 3 - produce the relevant documents.7 Subsequently, Petitioner produced a copy of the June 11, 2014 investigation conducted by Robert Jackson & Associates.8 The investigator wrote that she had reviewed the Grupo Petropolis website at grupopetropolis.com.br and the Crystal beer website at cervejacrystal.com.br.9 The report also referred to unidentified websites, “archived pages” for the above-noted websites, and “various Internet search engines.”10 Finally, during the testimony deposition of Maxine Kaplan, an investigator at Robert Jackson & Associates, Ms. Kaplan testified that during her investigation in June 2014, she reviewed the Wayback Machine for Bond Laboratories, Respondent’s predecessor-in-interest, and Respondent.11 Petitioner did not supplement its discovery responses to include the above-identified Wayback Archive Internet printouts. During Petitioner’s testimony period, Petitioner introduced the Wayback Archive Internet printouts through the above-noted notices of reliance. Respondent argues that it was prejudiced by Petitioner’s failure to supplement its discovery responses by providing copies of the Wayback Archive Internet printouts because Respondent “was unable to question Ms. Kaplan about the specific searches during Ms. Kaplan’s testimony deposition or 7 53 TTABVUE 3-4, 36-39, and 59-60. 8 53 TTABVUE 4 and 70-71. 9 53 TTABVUE 71. 10 Id. 11 53 TTABVUE 4-5. Cancellation No. 92059437 - 4 - obtain evidence to counter the information in the WAYBACK MACHINE® searches.”12 In opposition to Respondent’s motion, Petitioner argues that Respondent was not prejudiced by Petitioner’s failure to produce the Wayback Archive Internet printouts because they were referred to in the June 2014 report that was produced during discovery and that the printouts were copies of Respondent’s websites.13 Also, Petitioner pointed out that the Wayback Archive Internet printouts were not created until January 2016, after the close of discovery, and in anticipation of trial.14 Respondent’s objection is that it was prejudiced by not having the Wayback Archive Internet printouts produced earlier in response to its discovery requests. However, the Wayback Archive Internet printouts were created by Petitioner in anticipation of its testimony period. Those documents were not in its possession when Petitioner was responding to written discovery or at any time during the discovery period. Moreover, Respondent was not put at a disadvantage in preparing its case for trial because Petitioner’s evidence regarding Respondent’s lack of use should not have come as a surprise as it has become common practice to introduce Wayback Archive Internet printouts to show how a party’s website previously looked. Moreover, the Wayback Archive Internet printouts were equally accessible to Respondent (i.e., they were publicly available via the Internet) and they were copies of Respondent’s own 12 53 TTABVUE 7. 13 60 TTABVUE 2. 14 Id. Cancellation No. 92059437 - 5 - websites. Finally, Respondent had thirty days between the close of Petitioner’s testimony period and the opening of its testimony period to prepare any rebuttal against the evidence from the Wayback Archive Internet printouts. Accordingly, Respondent’s objection to the Wayback Archive Internet printouts introduced in Petitioner’s third and fourth notices of reliance on the basis that the documents were not previously produced in response to Respondent’s discovery requests is overruled. B. Petitioner’s objection to Respondent’s seventh notice of reliance on Respondent’s responses to Petitioner’s interrogatories. Petitioner filed a notice of reliance on Respondent’s responses to Petitioner’s interrogatory Nos. 3, 10, 12, 13, and 18, including the 2011 assignment of the registration at issue to Respondent from Bond Laboratories produced in response to Petitioner’s interrogatory No. 18.15 Subsequently, during Respondent’s testimony period, Respondent filed a notice of reliance on its responses to Petitioner’s interrogatory Nos. 1, 5, 7, 8, 9, 11, 14 and 19 and “the relevant documents that were produced by Respondent in response to these interrogatories.”16 Petitioner objects to Respondent’s notices of reliance on these interrogatory responses and documents on the grounds that (i) Respondent’s responses to its own interrogatory answers were not properly introduced in accordance with Trademark Rule 2.120(k)(5), 37 C.F.R. § 2.120(k)(5), (ii) Respondent did not identify any documents responsive to the interrogatories pursuant to Fed. R. Civ. P. 33(d), (iii) the documents are not 15 19 TTABVUE. 16 32 TTABVUE 1-3. Cancellation No. 92059437 - 6 - Respondent’s business records that could be produced pursuant to Fed. R. Civ. P. 33(d), (iv) the documents have not been authenticated, and (v) the documents are hearsay.17 Respondent argues to the contrary that it “provided a sufficient explanation in these Notices of Reliance about why it needed to rely on each of the additional interrogatory answers and the documents that had been produced in response to thereto.”18 Respondent’s Notice of Reliance Nos. 7 and 8 seek to introduce into evidence certain documents Respondent produced to Petitioner about Respondent’s intent to use and/or actual use of the FUSION mark; this evidence is necessary to avoid an unfair interpretation of the limited number of Respondent’s Interrogatory Responses admitted into evidence by Petitioner, which seeks to establish that Respondent has abandoned the FUSION mark with no intent to resume use.19 Trademark Rule 2.120(k)(5), 37 C.F.R. § 2.120(k)(5), reads follows: Written disclosures, an answer to an interrogatory, or an admission to a request for admission, may be submitted and made part of the record only by the receiving or inquiring party except that, if fewer than all of the written disclosures, answers to interrogatories, or fewer than all of the admissions, are offered in evidence by the receiving or inquiring party, the disclosing or responding party may introduce under a notice of reliance any other written disclosures, answers to interrogatories, or any other admissions, which should in fairness be considered so as to make not misleading what was offered by the receiving or inquiring party. The notice of reliance filed by the disclosing or responding party must be supported by a written statement explaining why the disclosing or 17 50 TTABVUE 9-13. 18 52 TTABVUE 9. 19 52 TTABVUE 9. Cancellation No. 92059437 - 7 - responding party needs to rely upon each of the additional written disclosures or discovery responses listed in the disclosing or responding party’s notice, and absent such statement the Board, in its discretion, may refuse to consider the additional written disclosures or responses. In other words, the responding party may introduce other answers to interrogatories to avoid an unfair interpretation of the responses introduced by the inquiring party. TRADEMARK TRIAL AND APPEAL BOARD MANUAL OF PROCEDURE (“TBMP”) § 704.10 (June 2018); see also Hiraga v. Arena, 90 USPQ2d 1102, 1105 (TTAB 2009) (“if fewer than all of the answers to a set of interrogatories are offered into evidence by the inquiring party (petitioner herein), the responding party (respondent herein) may introduce, under a notice of reliance, any other answers to interrogatories that should be considered so as to avoid an unfair interpretation of the responses offered for the record by the inquiring party.”). The interrogatories on which Petitioner relies refer Respondent’s use of the FUSION mark. The interrogatories and responses are summarized below: Interrogatory No. 3 – the dates of use for Respondent’s mark. Response – Respondent’s predecessor used the mark for the identified goods from January 18, 2006 until the mark was sold to Respondent and Respondent began using the mark in connection with a pre-mixed energy drink as early as October 2014.20 Interrogatory No. 10 – the circumstances under which Respondent has exported or shipped FUSION brand products into the United States. 20 19 TTABVUE 7. Cancellation No. 92059437 - 8 - Response – Respondent does not export or ship FUSION products into the United States.21 Interrogatory No. 12 – describe Respondent’s advertising for its FUSION products. Response – “At this time [Respondent] does not advertise or promote its FUSION product in the United States.”22 Interrogatory No. 13 – Respondent’s reason for discontinuing the sale of “non-alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink.” Response – when Respondent purchased the FUSION mark, it wanted to sell the related liquid rather than powder product.23 Interrogatory No. 18 – identify all agreements relating to Respondent’s FUSION mark. Response – such documents will be produced.24 Respondent seeks to rely on the additional interrogatory responses summarized below, including the explanation of why the interrogatory avoids an unfair or misleading interpretation of another interrogatory answer: Interrogatory No. 1 – identify all marks that Respondent has used or registered in the United States with the word FUSION. Response - Registration No. 3788757 for the mark at issue.25 Explanation why this interrogatory avoids an unfair interpretation of the other interrogatory responses 21 19 TTABVUE 9. 22 19 TTABVUE 10. 23 19 TTABVUE 10. 24 19 TTABVUE 11. 25 32 TTABVUE 12. Cancellation No. 92059437 - 9 - – Respondent does not identify which interrogatory responses relied upon by Petitioner that this interrogatory response clarifies. According to Respondent, this interrogatory response rebuts Petitioner’s notice of reliance on a different FUSION registration registered by Respondent’s predecessor.26 Interrogatory No. 5 – identify where Respondent’s FUSION products have been sold in the United States. Response – documents responsive to this interrogatory will be produced.27 Explanation why this interrogatory avoids an unfair interpretation of the other interrogatory responses – Respondent does not identify which interrogatory responses relied upon by Petitioner that this interrogatory clarifies. Respondent explains that this interrogatory response refers to Respondent’s use or intent to use the FUSION mark.28 Interrogatory No. 7 – state the sales figures in units and dollars for Respondent’s FUSION products in the United States. Response – documents responsive to this interrogatory will be produced.29 Explanation why this interrogatory avoids an unfair interpretation of the other interrogatory responses – Respondent does not identify which interrogatory responses relied upon by Petitioner that this interrogatory clarifies. Respondent explains that this interrogatory response refers to Respondent’s use or intent to use the FUSION mark.30 26 32 TTABVUE 3. 27 32 TTABVUE 13. 28 32 TTABVUE 3. 29 32 TTABVUE 15. 30 32 TTABVUE 3. Cancellation No. 92059437 - 10 - Interrogatory No. 8 – describe whether Respondent has manufactured FUSION products in the United States. Response – Respondent’s “pre-mixed energy drink is being manufactured in the United States by the Drink Ink.”31 Explanation why this interrogatory avoids an unfair interpretation of the other interrogatory responses – Respondent does not identify which interrogatory responses relied upon by Petitioner that this interrogatory clarifies. Respondent explains that this interrogatory response refers to Respondent’s use or intent to use the FUSION mark.32 Interrogatory No. 9 – describe the circumstances under which Respondent has sold any FUSION products in the United States. Response – Respondent’s predecessor sold FUSION “non- alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink” in the United States since at least as early as January 18, 2006 and ceased selling it on November 3, 2011. “Respondent began selling its FUSION pre-mixed energy drink in the United States in October 2014.”33 Explanation why this interrogatory avoids an unfair interpretation of the other interrogatory responses – Respondent does not identify which interrogatory responses relied upon by Petitioner that this interrogatory clarifies. Respondent explains that this interrogatory response refers to Respondent’s use or intent to use the FUSION mark.34 31 32 TTABVUE 15. 32 32 TTABVUE 3. 33 32 TTABVUE 15-16. 34 32 TTABVUE 4. Cancellation No. 92059437 - 11 - Interrogatory No. 11 – describe Respondent’s sales of FUSION products to wholesalers, retailers, distributors, or other customers in the United States. Response – Respondent has sold its FUSION pre-mixed energy drink to its distributor San Diego Cash & Carry since October 2014.35 Explanation why this interrogatory avoids an unfair interpretation of the other interrogatory responses – Respondent does not identify which interrogatory responses relied upon by Petitioner that this interrogatory clarifies. Respondent explains that this interrogatory response refers to Respondent’s use or intent to use the FUSION mark.36 Interrogatory No. 14 – explain why Respondent has not abandoned the FUSION mark. Response – Respondent’s predecessor used the mark. Respondent is selling FUSION products. Documents response to this interrogatory will be produced.37 Explanation why this interrogatory avoids an unfair interpretation of the other interrogatory responses – Respondent does not identify which interrogatory responses relied upon by Petitioner that this interrogatory clarifies. Respondent explains that this interrogatory response refers to Respondent’s use or intent to use the FUSION mark.38 Interrogatory No. 19 – with respect to each product sold under the FUSION mark, identify the period of nonuse and state the reason for the nonuse. 35 32 TTABVUE 16-17. 36 32 TTABVUE 4. 37 32 TTABVUE 17-18. 38 32 TTABVUE 4. Cancellation No. 92059437 - 12 - Response – Respondent’s predecessor use the FUSION mark until November 3, 2011 and Respondent used the FUSION mark in early October 2014.39 Explanation why this interrogatory avoids an unfair interpretation of the other interrogatory responses – Respondent does not identify which interrogatory responses relied upon by Petitioner that this interrogatory clarifies. Respondent explains that this interrogatory response refers to Respondent’s use or intent to use the FUSION mark.40 Respondent sought to introduce the additional discovery responses to show how Respondent uses the FUSION mark and to rebut the presumption that it abandoned the use of the FUSION mark with no intent to resume use, rather than clarify the interrogatory responses on which Petitioner relied. Respondent, in its explanations as to why the additional interrogatories should be considered, did not identify any interrogatory responses that needed to be clarified and, thus, Respondent failed to explain how the additional interrogatories introduced by Respondent clarified the interrogatory responses on which Petitioner relied. Moreover, Respondent, in its explanations, stated that it sought to use the additional interrogatory responses to show how it uses the FUSION mark or that it did not abandon the FUSION mark with no intent to resume use. Accordingly, Respondent’s notice of reliance on its own interrogatory responses is not admissible under Trademark Rule 2.120(k)(5). Petitioner’s objection to Respondent’s seventh notice of reliance is sustained.41 39 32 TTABVUE 19. 40 32 TTABVUE 4. 41 32 TTABVUE. Cancellation No. 92059437 - 13 - C. Petitioner’s objection to Respondent’s eighth notice of reliance on Respondent’s responses to Petitioner’s interrogatory No. 4.42 The circumstances regarding Respondent’s eighth notice of reliance on Respondent’s response to Petitioner’s interrogatory No. 4 are different from its seventh notice of reliance discussed above. In response to Petitioner’s interrogatory No. 12, Respondent stated that it does not advertise or promote its FUSION product in the United States. However, in response to Petitioner’s interrogatory No. 4 (identify all the media in which Respondent advertises its FUSION products in the United States), Respondent produced photographs of the Brazilian race car driver Tony Kanaan displaying the FUSION mark on his jumpsuit and car at various races in the United States and, thus, serving to show how Respondent advertises and promotes its FUSION products in the United States.43 Respondent explains that its response to Interrogatory No. 4 is necessary to clarify its response to Interrogatory No. 12. We find that Respondent’s statement regarding why we should consider Respondent’s response to Interrogatory No. 4 is sufficient to explain how it clarifies the extent of Respondent’s advertising and promotion in the United States and renders Petitioner’s reliance on Respondent’s response to Interrogatory No. 12 not misleading. However, Respondent’s response to Interrogatory No. 4 stated that it would produce documents responsive to this interrogatory without specifically identifying 42 35 TTABVUE. 43 35 TTABVUE 3. Cancellation No. 92059437 - 14 - which documents.44 Petitioner argues that Respondent “did not properly invoke Rule 33(d) during discovery and cannot now claim the documents form part of its interrogatory responses.”45 Respondent argues that because Fed. R. Civ. P. 33(d) allows a party responding to an interrogatory to state that documents will be made available from which the answer may be derived, it is not necessary for the responding party to expressly identify the responsive documents. In this regard, Respondent produced only 44 documents, so the number of documents was not so voluminous that Petitioner could not readily ascertain the relevance of the documents.46 Rule 33(d) of the Federal Rules of Civil Procedure provides the following: (d) OPTION TO PRODUCE BUSINESS RECORDS. If the answer to an interrogatory may be determined by examining, auditing, compiling, abstracting, or summarizing a party’s business records (including electronically stored information), and if the burden of deriving or ascertaining the answer will be substantially the same for either party, the responding party may answer by: (1) specifying the records that must be reviewed, in sufficient detail to enable the interrogating party to locate and identify them as readily as the responding party could; and (2) giving the interrogating party a reasonable opportunity to examine and audit the records and to make copies, compilations, abstracts, or summaries. 44 35 TTABVUE 11. 45 50 TTABVUE 10. 46 52 TTABVUE 10. Cancellation No. 92059437 - 15 - Respondent has not met the prerequisites for allowing a party to invoke Rule 33(d) in lieu of providing a written answer to the interrogatory, Jain v. Ramparts, Inc., 49 USPQ2d 1429, 1433 (TTAB 1998). Nevertheless, we are persuaded that its failure to comply with the letter of the Rules was harmless, because Respondent produced only 44 documents, Petitioner was not unduly burdened reviewing the documents, the relevance of the documents was readily apparent, and Petitioner was not surprised that the documents at issue show how Respondent advertises and markets its FUSION product. Accordingly, Petitioner’s objection to Respondent’s eighth notice of reliance is overruled.47 D. Numerous objections by both parties. In addition to the above-identified objections, both parties have lodged numerous other objections. None of the evidence sought to be excluded is outcome determinative. Moreover, the Board is capable of weighing the relevance and strength or weakness of the objected to testimony and evidence, including any inherent limitations. As necessary and appropriate, we will point out any limitations in the evidence or otherwise note that the evidence cannot be relied upon in the manner sought. In doing so, we have kept in mind the various objections raised by the parties and we have accorded whatever probative value the subject testimony and evidence merit. See Luxco, Inc. v. Consejo Regulador del Tequila, A.C., 121 USPQ2d 1477, 1479 (TTAB 2017). 47 35 TTABVUE. Cancellation No. 92059437 - 16 - E. Illegible exhibits Numerous evidentiary exhibits are partially illegible. It is the responsibility of the party making submissions to the Board via the electronic database to ensure that the evidence has, in fact, been properly made of record. Trademark Rule 2.126(a)(2), 37 C.F.R. § 2.126(a)(2) (“Exhibits pertaining to an electronic submission must be made electronically as an attachment to the submission and must be clear and legible.”). See Weider Publ’ns, LLC v. D&D Beauty Care Co., 109 USPQ2d 1347, 1350- 51 (TTAB 2014); Alcatraz Media, Inc. v. Chesapeake Marine Tours Inc. dba Watermark Cruises, 107 USPQ2d 170, 1758 n.16 (TTAB 2013), aff’d mem., 565 Fed. Appx. 900 (Fed. Cir. 2014) (“the onus is on the party making the submissions to ensure that, at a minimum, all materials are clearly readable by the adverse party and the Board”); Hard Rock Cafe Licensing Corp. v. Elsea, 48 USPQ2d 1400, 1404 (TTAB 1998) (“It is reasonable to assume that it is opposer’s responsibility to review the documents it submits as evidence to ensure that such submissions meet certain basic requirements, such as that they are legible and identified as to source and date.”). We have given illegible evidence probative value to the extent that we can read and understand what it says. Cancellation No. 92059437 - 17 - II. The Record The record includes the pleadings and, by operation of Trademark Rule 2.122(b), 37 C.F.R. § 2.122(b), Respondent’s registration file.48 The parties introduced the testimony and evidence listed below: A. Petitioner’s testimony and evidence 1. A notice of reliance on the following items: a. Copy of the file history for Petitioner’s application Serial No. 86276294 for the mark FUSION ENERGY DRINK and design for “preparations for making beverages; non-alcoholic beverages; syrup for soft drinks; mineral water; drinking water; beer; non- alcoholic juice-based fruit beverages; energy drinks,” in Class 32, printed from the USPTO electronic database;49 b. Copy of the file history for Petitioner’s application Serial No. 86370771 for the mark FUSION ENERGY DRINK and design for “aerated water; mineral water; preparations for making beverages, namely energy drinks; non-alcoholic beverages, namely, energy drinks; beer; non-alcoholic fruit based drinks; fruit juices; non- alcoholic energy drinks; soft drinks, namely, sodas; syrups for making soft drinks,” in Class 32, printed from the USPTO electronic database;50 2. Notice of reliance on Bond Laboratories, Inc.’s (Respondent’s predecessor-in-interest) Quarterly Report Pursuant to Section to 13 or 48 Because Respondent’s registration file is of record by operation of Trademark Rule 2.122(b), it was not necessary for Petitioner to file a notice of reliance on the specimens of use Bond Laboratories, Inc. filed in connection with the prosecution of the application which matured into the registration at issue. See 22 TTABVUE. 49 15 TTABVUE 6. 50 15 TTABVUE 66. Cancellation No. 92059437 - 18 - 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2011;51 3. Notice of reliance on “2011 Wayback Internet Archive printouts of bond-labs.com/brands” (March 10, April 16, June 6, July 17, August 16, and September 25, 2011);52 4. Notice of reliance on 29 “current Internet printouts and 2011-2015 Wayback Archive Internet printouts of [Respondent’s] websites” at grupopetropolis.com.br; 53 5. Notice of Reliance on Respondent’s responses to Petitioner’s interrogatory Nos. 3, 10, 12, 13, and 18, including the 2011 assignment of the registration at issue to Respondent from Bond Laboratories produced in response to Petitioner’s interrogatory No. 18;54 6. Notice of reliance on a copy of Registration No. 3796825 for the mark FUSION PREMIUM ENERGY for, inter alia, “beverages, namely, sports drinks and energy drinks,” in Class 32, owned by Bond Laboratories, Inc., printed from the USPTO electronic database;55 51 16 TTABVUE. 52 17 TTABVUE. 53 18 TTABVUE. 54 19 TTABVUE. 55 20 TTABVUE. Cancellation No. 92059437 - 19 - 7. Notice of reliance on Respondent’s request for production of documents No. 8 stating that no documents exist;56 8. Notice of reliance on Internet printouts from the Food and Drug Administration’s website at fda.gov;57 and 9. Testimony deposition of Maxine Kaplan, a private investigator employed by Robert Jackson and Associates, a private investigation firm specializing in intellectual property.58 B. Respondent’s testimony and evidence. 1. Notice of reliance on Internet website eatbydate.com;59 2. Notice of reliance on Bond Laboratories, Inc.’s Quarterly Report Pursuant to Section to 13 or 15(d) of the Securities Exchange Act of 1934 for the years ending December 31, 2011 and December 31, 2012:60 3. Notice of reliance on copies of the grupopetropolis.com/br and tntenergydrink.com/br websites;61 56 21 TTABVUE. 57 23 TTABVUE. 58 36 TTABVUE. 59 26 TTABVUE. 60 27 TTABVUE; see also 42 TTABVUE. 61 28 TTABVUE. Cancellation No. 92059437 - 20 - 4. Notice of reliance on Wayback Archive Internet printouts purportedly showing how Respondent markets its TNT, IRONAGE and MAGNETO energy drinks;62 5. Notice of reliance on Internet evidence purportedly showing how Respondent markets energy drinks;63 6. Notice of reliance on copies of Respondent’s Registration No. 3152949 for the mark TNT LIQUID DYNAMITE ENERGY DRINK TAURINE CAFFEINE and design and Registration No. 4496872 for the mark TNT, both for “energy drinks,” in Class 32, printed from the USPTO electronic database;64 and 7. Notice of reliance on Respondent’s response to Petitioner’s interrogatory No. 465 and Internet evidence purportedly showing Respondent’s mark promoted at car racing events in the United States.66 III. Standing A threshold issue in every inter partes case is the plaintiff's standing to challenge registration. See Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058, 1062 (Fed. Cir. 2014); John W. Carson Found. v. Toilets.com Inc., 94 62 29 TTABVUE. 63 30 TTABVUE. 64 31 TTABVUE. 65 35 TTABVUE 9-17. 66 35 TTABVUE 19-50. Cancellation No. 92059437 - 21 - USPQ2d 1942, 1945 (TTAB 2010). To establish its standing, Petitioner must prove that it has a “real interest,” i.e., a “reasonable” basis for its belief of damage. See Empresa Cubana, 111 USPQ2d at 1062; Ritchie v. Simpson, 170 F.3rd 1092, 50 USPQ2d 1023, 1025 (Fed. Cir. 1999); Lipton Indus., Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 185, 189 (TTAB 1982). Petitioner has adequately established a real interest in this proceeding through its evidence that it filed two trademark applications with the USPTO for FUSION ENERGY DRINK and designs for, inter alia, energy drinks and that the USPTO issued refusals to register the applications based on likelihood of confusion with Respondent’s registration under Section 2(d) of the Trademark Act, 15 U.S.C. § 1052(d).67 See SaddleSprings Inc. v. Mad Croc Brands Inc., 104 USPQ2d 1948, 1950 (TTAB 2012) (standing supported by allegation that petitioner’s intent-to-use application has been refused based on respondent’s registrations); ShutEmDown Sports Inc. v. Lacy, 102 USPQ2d 1036, 1043 (TTAB 2012) (standing shown by evidence that plaintiff’s application was refused registration in view of defendant’s registration); Fiat Grp. Autos. S.p.A. v. ISM Inc., 94 USPQ2d 1111, 1112 (TTAB 2010) (the filing of opposer’s application and the Office’s action taken in regard to that application provide opposer with a basis for pleading its standing). Respondent, in its brief, does not challenge Petitioner’s standing. We find that Petitioner has established its standing to bring the petition for cancellation. 67 15 TTABVUE 44 and 90. Cancellation No. 92059437 - 22 - IV. Abandonment A. Statement of the Law The Trademark Act provides for the cancellation of a registration if the registered mark has been abandoned. See Section 14 of the Trademark Act, 15 U.S.C. §1064(3). Under Section 45 of the Trademark Act, 15 U.S.C. §1127, a mark is considered abandoned when “its use has been discontinued with intent not to resume such use.” The definition of abandonment is found in this provision, as follows: A mark shall be deemed to be “abandoned” if either of the following occurs: (1) When its use has been discontinued with intent not to resume such use. Intent not to resume may be inferred from circumstances. Nonuse for 3 consecutive years shall be prima facie evidence of abandonment. “Use” of a mark means the bona fide use of such mark made in the ordinary course of trade, and not made merely to reserve a right in a mark. … 15 U.S.C. §1127. Because registrations are presumed valid under the law, the party seeking their cancellation bears the burden of proving a prima facie case of abandonment by a preponderance of the evidence. See On-Line Careline Inc. v. Am. Online Inc., 229 F.3d 1080, 56 USPQ2d 1471, 1476 (Fed. Cir. 2000); Cerveceria Centroamericana S.A. v. Cerveceria India Inc., 892 F.2d 1021, 13 USPQ2d 1307, 1309 (Fed. Cir. 1989); Exec. Coach Builders, Inc. v. SPV Coach Co., 123 USPQ2d 1175, 1180-81 (TTAB 2016). If the petitioner presents a prima facie case of abandonment, the burden of production Cancellation No. 92059437 - 23 - (i.e., going forward), then shifts to the trademark holder to rebut the prima facie showing with evidence. Cerveceria Centroamericana, 13 USPQ2d at 1311. Abandonment is a question of fact. See Stock Pot Rest., Inc. v. Stockpot, Inc., 737 F.2d 1576, 222 USPQ 665, 667 (Fed. Cir. 1984). Thus, any inference of abandonment must be based on proven fact. Section 45 of the Trademark Act. See also Cerveceria Centroamericana S.A. v. Cerveceria India Inc., 13 USPQ2d at 1310 (“The protection due the registrant is provided by requiring that the inference have an adequate foundation in proven fact. Whenever an inference is based on pure speculation and ‘there is no basis … to infer nonuse,’ a prima facie case of abandonment must fail.”) (quoting P.A.B. Produits et Appareils de Beaute v. Satinine Societa in Nome Collettivo di S.A. e. M. Usellini, 570 F.2d 328, 332-33, 196 USPQ 801, 804-05 (CCPA 1978)); Stetson v. Howard D. Wolf & Assoc’s, 955 F.2d 847, 21 USPQ2d 1783, 1785 (2d Cir. 1992) (A party claiming that a mark has been abandoned must show “non-use of the mark by the legal owner and no intent by that person or entity to resume use.”). Proof of non-use for three consecutive years, however, constitutes prima facie evidence of abandonment, because it supports an inference of a lack of intent to resume use. Section 45 of the Trademark Act. See also Yazhong Investing Ltd. v. Multi-Media Tech. Ventures, Ltd., 126 USPQ2d 1526, 1533 (TTAB 2018); On-line Careline Inc. v. Am. Online Inc., 56 USPQ2d at 1476 (“The party seeking cancellation establishes a prima facie case of abandonment by showing proof of nonuse for three consecutive years.”); Emergency One, Inc. v. Am. FireEagle, Ltd., 228 F.3d 531, 56 USPQ2d 1343 (4th Cir. 2000). As noted above, if the plaintiff establishes non-use Cancellation No. 92059437 - 24 - for three consecutive years, the burden shifts to defendant to rebut the prima facie case by either disproving the three years of nonuse or showing an intent to resume use. Cerveceria Centroamericana, 13 USPQ2d at 1312. B. Evidence of Abandonment Petitioner introduced the evidence and testimony listed below to show that Respondent stopped using the mark FUSION for “non-alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink” for three consecutive years: • Bond Laboratories, Inc.’s, Petitioner’s predecessor-in-interest, Form 10-Q filed with the U.S. Securities and Exchange Commission for the quarter ending June 30, 2011.68 Bond Laboratories reported that its gross margins for the period ending June 30, 2011 increased from the report ending June 30, 2010 based on the company’s decision to discontinue sales of products at the Fusion Premium Beverage division.69 • Copies of six excerpts from the Bond Laboratories website (bond- labs.com/brands) printed from the Wayback Internet Archive website for March 10, 2011, April 16, 2011, June 6, 2011, July 17, 2011, August 17, 68 16 TTABVUE 6. 69 16 TTABVUE 25. To show that Bond Laboratories had not stopped using the FUSION mark as of June 30, 2011, Respondent introduced Bond Laboratories’ Form 10-Q for the year ending December 31, 2011 in which Bond Laboratories stated that its revenues increased for over the years ending December 31, 2011 and 2010 “attributable the Company’s Fusion Premium Beverages Division, which the Company discontinued as of December 31, 2011.” (27 TTABVUE 26); see also Bond Laboratories Form 10-Q for the year ending December 31, 2012 attributing $0 for the cost goods sold attributable to the Fusion Premium Beverages Division in 2012 (27 TTABVUE 78). Cancellation No. 92059437 - 25 - 2011, and September 25, 2011. The copy of the March 10, 2011 website was the only version of the Bond Laboratories websites that referred to FUSION products.70 • Copies of 29 excerpts from Respondent’s grupopetropolis.com.br website from December 26, 2011 through January 26, 2016 printed the Wayback Internet Archive website.71 The websites do not refer to any FUSION products or to the FUSION mark. • In response to Petitioner’s interrogatory No. 3, Respondent stated that Bond Laboratories used FUSION to identify “effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink” from January 18, 2006 “until about the time the mark was sold to [Respondent].”72 Bond Laboratories transferred the FUSION mark and registration to Respondent on October 27, 2011.73 Respondent also stated that at least as early as October 2014, Respondent began using FUSION to identify a pre-mixed energy drink.74 However, that portion of the interrogatory response regarding when Respondent resumed use of FUSION is not corroborated by any other testimony or evidence. A party’s response to an interrogatory is not without evidentiary value, but generally 70 17 TTABVUE. 71 18 TTABVUE. 72 19 TTABVUE 7-8. 73 19 TTABVUE 19. The “Trademark Rights Purchase Agreement” between Bond Laboratories and Respondent was signed November 3, 2011. (19 TTABVUE 20). 74 19 TTABVUE 8. Cancellation No. 92059437 - 26 - is viewed as “self-serving.” General Electric Co. v. Graham Magnetics Inc., 197 USPQ 690, 692 n.5 (TTAB 1977) (citing Grace & Co. v. City of Los Angeles, 278 F.2d 771, 776 (9th Cir. 1960)); Beecham Inc. v. Helene Curtis Industries, Inc., 189 USPQ 647 (TTAB 1976) (ordinarily a party may not rely upon his own answers to his adversary's interrogatories since said answers would be self-serving in character). The trier of fact has discretion to decide what weight to give to an interrogatory response. ShutEmDown Sports Inc. v. Lacy, 102 UPSQ2d 1036, 1043 (TTAB 2012); see also Marcoin, Inc. v. Edwin K. Williams & Co., Inc., 605 F.2d 1325, 1328, 28 Fed. R. Serv. 2d 157 (4th Cir. 1979) (trier of fact has discretion as to weight to give to an interrogatory response). Once in the record, a party may properly argue the probative effect of such evidence. See Safer Inc. v. OMS Investments Inc., 94 USPQ2d 1031, 1040 (TTAB 2010); Beecham Inc., 189 USPQ at 647. When we consider the testimony and evidence introduced by both parties in their entirety, we find that Respondent’s contention that it began using FUSION for energy drinks at least as early as October 2104 is not persuasive. • In response to Petitioner’s interrogatory No. 10, Respondent stated that “it does not export or ship any FUSION products into the U.S.”75 75 19 TTABVUE 9. Cancellation No. 92059437 - 27 - • In response to Petitioner’s interrogatory No. 12, Respondent stated that “[a]t this time [May 1, 2015] [Respondent] does not advertise or promote its FUSION product in the United States.”76 • In response to Petitioner’s interrogatory No. 13 [reasons for discontinuing the sale of FUSION “effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink”], Respondent stated that “at the time it purchased the mark [October 27, 2011] it wanted to sell the related liquid rather than powder product.”77 • Respondent stated that there are no documents responsive to Petitioner’s request for production of documents No. 8 [documents identifying all Internet websites and blogs owned or operated by or on behalf of Respondent that display or refer to Respondent’s FUSION mark and products].78 • Maxine Kaplan, an investigator for Robert Jackson & Associates, a private investigation firm specializing in intellectual property investigations, testified that she found no evidence of any use of FUSION. Q. Did your 2014 investigation reveal any Fusion branded energy drinks at all? A. None. Q. Did your investigation reveal any Fusion branded powders that would be used to make drinks? 76 19 TTABVUE 10. 77 19 TTABVUE 10. 78 21 TTABVUE 8. Cancellation No. 92059437 - 28 - A. I did not find any reference to any Petropolis Fusion energy drinks or powders, or Bond Fusion products, energy drinks or powders. Q. Okay. Did you find any evidence in your investigation that would indicate or suggest that either Bond or Petropolis had some intent to use Fusion on energy drinks, powders, or any other products? A. No.79 Petitioner has established a prima facie case of abandonment based on at least three consecutive years nonuse from October 27, 2011. Respondent has not resumed use of the mark FUSION in connection with “effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink.” Respondent purportedly began using FUSION in connection with a pre-mixed energy drink in October 2014; but, as noted above, we do not find that October 2014 to be persuasive. Respondent and its predecessor-in-interest stopped using FUSION in connection with “effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink” on October 27, 2011 and did not resume use of the mark in connection with those products for at least three years immediately following that date. By statute, we can thus draw the presumption that Respondent has no intent to resume use of the mark on the goods. Thus, the burden of going forward and rebutting the prima facie showing, with evidence, shifts to Respondent.80 Societe Des 79 Kaplan Testimony Dep., p. 23:4-17 (36 TTABVUE 26). 80 As discussed below, because there has been more than three years of nonuse with no evidence of any intent to resume use, we do not need to determine whether consumers will believe that FUSION energy drinks emanate from the same source as FUSION “non-alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink.” Cancellation No. 92059437 - 29 - Produits Marnier Lapostolle v. Distillerie Moccia S.R.L., 10 USPQ2d 1241, 1244 (TTAB 1989) (evidence of non-use (for two years then) sufficient to shift the burden to respondent to rebut inference of abandonment). C. Respondent’s intent not to resume use Respondent introduced the evidence listed below in an effort to show that it did not abandon the FUSION mark: • Copies of the grupopetropolis.com/br and tntenergydrink.com websites showing Respondent advertising and promoting its TNT energy drink since early 2009.81 According to Respondent, This evidence is relevant to show that Respondent’s purchase of the FUSION mark, U.S. Registration No. 3788757, from the prior owner is consistent with an extension of its current energy product line. Additionally, this evidence demonstrates that Respondent has had the capacity to market and manufacture the goods identified in Registration No. 3788757 since it purchased the mark.82 There are two problems with this evidence. First, without any supporting testimony, it is not clear that Respondent actively advertises, promotes or sells TNT energy drink in the United States. Second, without any supporting testimony or evidence, it is not clear how Respondent’s acquisition of FUSION for “non-alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink” is an extension of its energy product line. 81 28 TTABVUE. 82 28 TTABVUE 2-3. Cancellation No. 92059437 - 30 - • Copies of Respondent’s websites between 2011 and 2015 printed from the Wayback Machine Internet Archive website showing how Respondent has marketed its TNT, IRONAGE and MAGNETO energy drink products.83 Respondent asserts that these websites show that its purchase of the FUSION mark and registration for “effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink” is an extension of its energy product line and that Respondent has the capacity to manufacture an “effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink.”84 Without any supporting testimony or evidence, it is not clear how Respondent’s acquisition of FUSION for “non- alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink” is an extension of its energy product line and it does not support Respondent’s contention that Respondent has the capacity to manufacture such a product. • Copies of websites “available to the public on April 5, 2016.”85 According to Respondent, [T]his Internet evidence show[s] that Respondent is a recognized participant in the energy drink market, that its products are available outside of Brazil and that its TNT energy drink has been a sponsor of Scuderia Ferrari since 2012. This evidence is relevant to demonstrate that Respondent has had the capacity to market and 83 29 TTABVUE. 84 29 TTABVUE 2-3. 85 30 TTABVUE 1. Cancellation No. 92059437 - 31 - manufacture the goods identified in Registration No. 3788757 since it purchased the FUSION mark.86 Because Internet evidence is admissible only to show what has been printed, not the truth of the matter asserted, Respondent’s websites do show that its products are available outside of Brazil, or anywhere. See Safer Inc. v. OMS Investments Inc., 94 USPQ2d 1031, 1040 (TTAB 2010). Also, this evidence does not prove that Respondent has the capacity to market and manufacture “non-alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink.” • Copies of Registration No. 3152949 for the mark TNT LIQUID DYNAMITE and design87 and Registration No. 4496872 for the mark TNT both for energy drinks.88 According to Respondent, these registrations show that Respondent has been selling its TNT energy drink in the United States and that it has the capacity to market and manufacture “effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink.89 However, absent evidence of use, registrations are not evidence that the marks are in use or that the public has become familiar with them. Cf. Smith Bros. Mfg. Co. v. Stone Mfg. Co., 476 F.2d 1004, 177 USPQ 462, 463 86 Id. 87 31 TTABVUE 5. 88 31 TTABVUE 10. 89 31 TTABVUE 1. Cancellation No. 92059437 - 32 - (CCPA 1973) (the purchasing public is not aware of registrations reposing in the U.S. Patent and Trademark Office); AMF Inc. v. Am. Leisure Prods., Inc., 474 F.2d 1403, 177 USPQ 268, 169 (CCPA 1973) (third-party registrations are not evidence of what happens in the marketplace or that customers are familiar with them); Lilly Pulitzer, Inc. v. Lilli Ann Corp., 376 F.2d 324, 153 USPQ 406, 407 (CCPA 1967) (“the existence of these registrations is not evidence of what happens in the market place or that customers are familiar with their use.”); In re Morinaga Nyugyo Kabushiki Kaisha, 120 USPQ2d 1738, 1745 (TTAB 2016) (“third-party registrations standing alone, are not evidence that the registered marks are in use on a commercial scale, let alone that consumers have become so accustomed to seeing them in the marketplace that they have learned to distinguish among them by minor differences.”). Also, registrations for “energy drinks” do not prove that the owner thereof has the capacity to market and manufacture “effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink.” • Photographs responsive to Petitioner’s interrogatory No. 4 of Tony Kanaan’s race car, jumpsuit, and specifications for a race car.90 According to Respondent, these photographs are evidence of how Respondent advertises and markets it FUSION products in the United States.91 The 90 35 TTABVUE 13-17. 91 35 TTABVUE 3. Cancellation No. 92059437 - 33 - photograph of the race car does not display the FUSION mark. While the FUSION mark is displayed on the right elbow of the jumpsuit, the photograph is not dated so it is inconclusive when it was worn. Likewise, the specification for the race car is not dated and there is no evidence or testimony that the design was transferred to a race car. In any event, there is no testimony or evidence regarding what the FUSION mark on the jumpsuit or racecar identifies. • Internet evidence purportedly showing how Tony Kanaan has advertised and promoted FUSION products.92 The websites listed below were relevant: i. TheApexRacing.com website posts an article on July 15, 2015 entitled “Tony Kannan’s New Look for the Iowa Corn 300” with a photograph of his racecar displaying the FUSION mark.93 ii. The images.search.yahoo.com website, features a photograph of Tony Kanaan in his jumpsuit displaying the FUSION mark. The webpage is dated April 2016.94 There is no testimony or evidence regarding what the FUSION mark on the jumpsuit identifies. iii. PatrickMcMullan.com website has webpage for the Iowa Corn Indy 300 advertising that “FUSION energy drink hosts VIP event at Iowa Corn Indy 300” on July 18, 2015.95 92 35 TTABVUE 19-50. 93 35 TTABVUE 38. 94 35 TTABVUE 42. The webpage URL and date are partially illegible. 95 35 TTABVUE 44. Cancellation No. 92059437 - 34 - iv. Facebook page for the IOWA 2015 featuring photographs of Tony Kanaan in his jumpsuit and on his racecar displaying the FUSION mark.96 There is no testimony or evidence regarding what the FUSION mark on the jumpsuit identifies. The problem with these websites is that there is no indication as to what FUSION identifies and distinguishes. Moreover, the earliest date that we can distinguish from these photographs is July 15, 2015 which is more than three years after Respondent stopped using the mark (October 27, 2011). While we have pointed out problems minimizing the probative value of Respondent’s evidence, assuming arguendo that the evidence is as probative as Respondent asserts, Respondent has shown the following: • Respondent’s use of FUSION for energy drinks beginning on July 15, 2015 at the Iowa Corn Indy 300 race; and • Respondent’s capability of manufacturing and marketing energy drinks. Even if we accepted December 31, 2011 from Bond Laboratories’ SEC Form 10-Q as the last day it used FUSION for “non-alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink,” there is still more than three years of nonuse (December 31, 2011 through July 15, 2015). Moreover, there is not a scintilla of evidence or testimony regarding Respondent’s intent to use FUSION during that period of nonuse. Respondent has not even adduced an admissible statement regarding its intent to 96 35 TTABVUE 46. Cancellation No. 92059437 - 35 - resume or commence use in the United States during the period of nonuse. Moreover, Respondent’s use of the mark as of July 15, 2015, after three consecutive years of nonuse, does not cure the abandonment. See Lesley Hornby v. TJX Cos., Inc., 87 USPQ2d 1411, 1422 (TTAB 2008) (sales made after a mark had been abandoned “would not retroactively cure her past abandonment.”); Stromgren Supports Inc. v. Bike Athletic Co., 43 USPQ2d 1100, 1112 (TTAB 1997) (evidence of intent to resume use which occurred after abandonment is evidence of a new use which does not cure the abandonment) (citing Cerveceria Centroamericana, 13 USPQ2d at 1312-13 (evidence of nonuse between 1977 and 1984 is not rebutted by evidence of an intent to resume use after 1984)). It appears that Respondent’s theory of the case is that because it acquired the FUSION mark for “non-alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink,” and because it markets energy drinks under other marks, Respondent ipso facto intended to resume use of FUSION in connection with energy drinks. However, merely because a party used a mark in the past “and it could use the mark in the future is not sufficient to avoid abandonment.” Lesley Hornby, 87 USPQ2d at 1422. Thus, as best one can determine from the record evidence, Respondent has not engaged in the type of activity necessary to resume its use of FUSION in connection with “non-alcoholic beverage ingredients, namely, effervescent powder to be dissolved in liquid to produce an energy drink and hypertonic drink.” See Volkswagewerk Aktiengesellschaft v. Advance Welding and Mfg. Corp., 193 USPQ 673, 676-77 (TTAB 1976) (because Cancellation No. 92059437 - 36 - respondent failed to take meaningful steps to raise the capital necessary to manufacture the products, respondent was unable to show an intent not to abandon its mark); Hamilton Burr Publ’g Co. v. E. W. Commc’n, Inc., 216 USPQ 802, 807 (TTAB 1982) (where reuse of the mark is speculative, defendant failed to rebut the presumption of an intent not to resume use). Accordingly, we find that Respondent abandoned its mark because there was nonuse from at least December 31, 2011 through July 15, 2015 with intent not to resume use. Decision: The petition to cancel Registration No. 3788757 for the mark FUSION is granted. Copy with citationCopy as parenthetical citation